Can Hong Kong's Cathay compete against rivals dishing out hefty bonuses?
Cathay Pacific Airways may find itself in a weaker position in the race for global talent, an analyst has said, after two of the airline's major rivals dished out heftier bonuses for at least two straight years.
Singapore Airlines (SIA) offered employees a profit-sharing bonus equivalent to 7.45 months' pay after reporting a record net profit of S$2.78 billion (US$2.15 billion) for 2024-25, surpassing analysts' expectations.
The amount is slightly lower than the 7.94 months' bonus it dished out last year, despite a 3.9 per cent increase in SIA's net profit.
Dubai-based airline Emirates' employees are also in line for a windfall after its group announced last week a record-breaking pre-tax profit of US$6.2 billion for the 2024-25 financial year, with staff set to receive a 22-week bonus payout.
Emirates, the most profitable airline in the world over the reporting period, has committed big bonuses to its ever-growing workforce for three years running. It awarded a 20-week bonus to employees in 2024 and a 24-week one in 2023.
By comparison, Cathay Group's net profit rose 1 per cent year on year to HK$9.9 billion (US$1.28 billion) in 2024, up from HK$9.78 billion in 2023, which was the first time it recorded a profit in four years. The company had accumulated a string of large deficits totalling HK$34 billion over three years when the Covid-19 pandemic crippled the travel industry.
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